Why Is Big Data So Important?
Around 90% of global data was generated in the last two years. Big data is growing, but why is it so important, and what kinds of challenges does the rise of big data pose for business leaders?
Big data has the potential to benefit all kinds of organizations, but currently, many company leaders and senior figures lack the knowledge and skills to be able to utilize data to revise strategies and inform decision-making. In 2020, we have access to 44 zettabytes of data, but there’s little point in talking about big data if you don’t understand how to take advantage of it. The US is in a situation where there is a severe shortage of leaders (around 1.5 million) who have the skills required to make data-based decisions. To overcome this problem, training and learning are vital.
Almost 40% of business leaders believe that using big data will improve customer relationships, while 26% think it will refine product development. The real-life example outlined in the infographic makes a strong case for investing in big data. Cricket Communications (now Cricket Wireless) achieved a 500% return on investment after investing $200,000 in 2011. Customer churn rates dropped, problems were identified and remedied faster and customer engagement increased. As a result of big data, the company saved $1.3 million per year.
To capitalize on big data, leaders need to be able to use data to produce different interpretations, to understand collection and analysis techniques, to evaluate multiple data points and to expand their knowledge base to cover data security and storage.
With technology advancing, and big data an increasingly influential factor in business, it has never been more important for leaders to embrace learning opportunities.
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Infographic Produced By Norwich University